Calculation of EPS and retained earnings Everdeen

Question: Calculation of EPS and retained earnings Ever…

Calculation of EPS and retained earnings Everdeen

Mining, Inc., ended 2015 with net profits before taxes of $427,000.

The company is subject to a 40% tax rate and must pay $65,500

In preferred stock dividends before distributing any earnings on the 172,000 shares of common stock currently outstanding.

1. Calculate​ Everdeen’s 2015 earnings per share​(EPS).
2. If the firm paid common stock dividends of $0.75

Per​share, how many dollars would go to retained​earnings?